Ask our Experts: Philippines Tax Annualization & Year-end Reporting
With December being the last payroll month of the year, employers in the Philippines must carry out year-end payroll adjustments or annualization as part of their obligations.
This yearly occurrence is necessary to determine each employee’s tax amount due for the year. The annual income tax due includes all salary and other supplementary income, including those from previous employer(s).
To help employers (and employees) navigate tax annualization in the Philippines, we review some of the commonly asked questions.